After three quarters of 2018, insurers had paid out nearly PLN 31 billion to the injured and customers. As usual, most damages and adjusted claims concerned motor insurance.
Key insurance market figures after Q3 2018
- More than PLN 70 billion of insurers’ assets are funds supporting the economy and public finances by domestic bonds and other fixed-income securities
- Nearly PLN 17 billion of insurers’ assets are funds invested on a long-term basis in the shares of companies from the WSE and other variable-income securities
- PLN 1 billion income tax to the State budget
- Insurers collected more than PLN 46 billion of premiums, 0.3% more than last year
Motor insurance market
- Gross compensations and benefits under RCA amounted to PLN 6.6 billion (an increase of 4.2%)
- Gross compensations and benefits under AC amounted to PLN 3.7 billion (an increase of 9.4%)
- PLN 568.7 is the average premium under the annual agreement on RCA for motor vehicle owners in Q3 2018 — 0.1% less than one year ago
- PLN 7,428 is the average loss on the agreement on RCA for motor vehicle owners at the end of Q3 2018 — less than 3% more than one year ago
‘Throughout the whole of 2018, the growth of premium in obligatory RCA for motor vehicle owners has been decelerating. At the moment, there is no ongoing work on regulations which could suddenly increase the costs of damages and benefits. This in turn reduces the likelihood of a sudden increase in prices’, said Grzegorz Prądzyński, president of the Board of the Polish Chamber of Insurance.
Non-life market (Chapter 2 excluding motor insurance)
- The total premiums for property insurance (exclusive of motor vehicles) amounted to PLN 12.4 billion and was 10.6% higher than the previous year.
- The following types of insurance have the largest share in the premium in the non-life insurance market: insurance against other property damage (PLN 2.4 billion, an increase of 16.7%), insurance against fire and other natural forces (PLN 2.4 billion, an increase of 2.5%) and general RCA (PLN 1.6 billion, YoY increase of 12.7%)
‘The PIU report entitled “Climate of risk. How can prevention and insurance reduce the impact of natural disasters on the environment?” shows clearly that the following years are marked by an increase in violent weather events. Unfortunately, without a good risk management policy, we also need to be ready for growing damage resulting from this fact’, explained Andrzej Maciążek, vice-president of the Board of PIU.
Life insurance market
- Value of the premium on life insurance amounted to PLN 16.4 billion (a decrease of 10.3%)
- The value of benefits from life insurance amounted to PLN 15.9 billion (an increase of 5.1%)
‘We are already familiar with the provisions of the act on Employee Capital Plans. The objectives of the ECP will be implemented with the participation of insurers. Some insurance companies will decide to offer ECP, while some will decide to act as intermediaries in offering plans, created within a capital group’, said J. Grzegorz Prądzyński.
Insurers’ financial results
- The net profit of life insurers after Q3 2018 amounted to PLN 2 billion and was 5.6% higher than a year ago
- Non-life insurers ended Q3 2018 with a profit of nearly PLN 3.7 billion, which means an increase
of 24.6%; however, one third of this result is made up of a dividend from PZU Życie SA to PZU SA, already included in last year’s life insurers’ net profits
The technical result on life insurance amounted to PLN 2.4 billion and was 0.5% lower than in the previous year. The technical result of non-life insurers amounted to PLN 2.4 billion and was 57% higher than in the previous year. The income tax payable by Polish insurers at the end of Q3 2018 amounted to PLN 1 billion and asset tax — approx. PLN 540 million.